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Bipartisan agreement on U.S. debt negotiations close to consensus, overview of key points of the agreement, left-wing and right-wing perspectives

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Bipartisan agreement on U.S. debt negotiations close to consensus, overview of key points of the agreement, left-wing and right-wing perspectives

As we all know, the Biden administration and the Republican Party have reached a consensus on the debt ceiling, and all that's left is the vote. What agreements have been reached? How do the left and right view this negotiation?

Debt Ceiling Agreement Details

The globally watched U.S. debt negotiation finally reached a preliminary consensus last Saturday (5/27).

According to Economic Daily News, it can be roughly divided into six items:

  1. Freeze Debt Ceiling: This negotiation does not raise the debt ceiling, but "freezes" this regulation until January 2025, which means that the Republicans and Democrats will not have to worry about the debt ceiling issue until after the 2024 presidential election.

  2. Freeze Discretionary Spending: Non-defense spending for the fiscal year 2024 will be roughly the same as this year and increase by about 1% in 2025.

  3. Increase Defense Spending: Increase defense spending to $885 billion, about 3% higher than last year's $858 billion.

  4. Increased Work Requirements: People aged 18-54 must work to apply for food assistance (originally 18-49).

  5. Energy Permits: The Republican Party's "broad adjustment" of the National Environmental Policy Act was rejected, but there is now a one-year time limit for environmental assessments (which can be extended after negotiation with the applicant).

  6. Recall Unspent COVID Aid: Unspent COVID aid will be recalled, estimated to be around $500-700 billion.

A Compromise Leaving Each Party Unhappy

Faced with a drama that occurs every few years, Biden and Republican House Speaker Kevin McCarthy have managed to uphold the interests of the majority: avoiding a debt default.

Of course, compromises were inevitable, and Biden believes this is the "responsibility of governance."

"This agreement represents compromise, meaning not everyone can get what they want. This is the responsibility of governance."

Indeed, some of the most left-wing Democrats and right-wing Republicans are dissatisfied.

Some Democrats are unhappy with the agreement on the social safety net, especially the restrictions on food assistance, and some are even angry. Additionally, some Democrats feel that Biden has made too many concessions without much in return.

Lindsay Owens, Executive Director of the left-leaning think tank Groundwork Collaborative, said:

"This agreement reduces protections for working families, increases unnecessary barriers, protects America's wealthiest and largest corporations, and reduces their taxes."

More right-wing Republicans are also dissatisfied, feeling that the agreement is insane and that increasing debt will lead the U.S. to bankruptcy.

They stated that they would absolutely not vote in favor.

Although some more extreme members of Congress are dissatisfied, McCarthy believes that this agreement should be able to gain the support of the majority of lawmakers.

Announcing First, Twitter Bashing Biden

Although an agreement has been reached, there are still some who will criticize.

Biden has always maintained a stance of not negotiating and reducing spending in debt negotiations, but he ultimately compromised, calling it the "responsibility of governance."

However, his opponents will not let him off easily.

House Republican Leader McCarthy tweeted before reaching the agreement, criticizing that Biden finally negotiated and wasted everyone's 97 days:

"Remember when President Biden insisted on not negotiating and wasted months? Republicans united and made him sit at the negotiating table. We cannot recover the 97 days President Biden wasted. But I am not just for reaching an agreement, I am fighting for transformative reform in America, and the American people deserve this reform."

Regardless, this drama has temporarily come to an end, but it will return in 2025!